FAAC Withdraws N173bn from ECA to Shore-up Shortfall

15 Mar 2013

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Minister of State for Finance, Alhaji Yerima Ngama

FG, states, LGs share N888bn  Finance ministry releases N400bn  Capex for first quarter

James Emejo Thursday withdrew the sum of N173.595 billion from the Excess Crude Account (ECA) to augment revenue shortfall for February.

This came as the Federal Government yesterday released N400 billion first quarter allocation for capital expenditure in the 2013 budget.

Also, yesterday, a total distributed statutory revenue amounting to N888.40 billion was shared among the three tiers of government for February.
It was also disclosed that the ECA had dropped to about $8.061billion from about $9.06 billion.

The figure shared yesterday represented an increase of N310.94 billion or 54.03 per cent over the N575.46 billion shared in the previous month.
Addressing journalists after the monthly meeting of the committee in Abuja, Minister of State for Finance, Alhaji Yerima Ngama, said the sum of N121.41 billion was transferred into the ECA for the month.

He said the new balance in the ECA was $8.061billion.
The minister noted that the gross revenue of  N571.67 billion recorded in the period under review was however, lower than the N651.26 billion received in the previous month by N79.58 billion.

He blamed the decrease in revenue to production hiccups and pipeline vandalism at Bonny, Forcados and Brass Terminals.
As a result the sum of N173.595 billion was used to augment the shortfall in revenue for the month.

A breakdown of the sharing showed that N445.84 billion was shared under statutory allocation while N62.707 billion represented Value Added Tax (VAT) collections.
Also shared was the sum of N35.549 billion for Subsidy Reinvestment and
Empowerment Programme (SURE-P);  N7.617 billion being refund of debt owed the federation account by the Nigerian National Petroleum Corporation (NNPC), as well as arrears of N156.76bn for the month of January owing to the late implementation of the budget.

The rundown showed that the federal government received  N209.86 billion representing 52.68 per cent; the 36 states got N106.44 billion or 26.72 per cent as well as the 774 local government areas which shared  N82.06 billion or 20.6 per cent.
Also shared was N47.48 billion to the nine oil producing states based on the 13 per cent principle of derivation.

For VAT, which amounted to N60.19 billion, the federal government received N9.03 billion or 15 per cent; states shared N30.1 billion or 50 per cent while local governments got N21.07 billion.

Meanwhile, the release of the N400 billion first quarter allocation for capital expenditure in the 2013 budget was contained in a statement signed by Mr. Paul Nwabuikwu, spokesman for the Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala.

The statement said that N120 billion had been earmarked for retiring bonds and payment of PHCN workers.

It said that N75 billion was for retiring bonds which became due while N45 billion was for the payment of PHCN workers.
“This is in line with the new debt management strategy which focuses on reducing the stock and flow of debt in a proactive manner,” it said.

Tags: Business, Nigeria, Featured, FAAC, ECA, Shortfall

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